Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Monday, May 7, 2012

APFT to fly high on deal with Canada firm

ASIA Pacific Flight Training (APFT) Sdn Bhd, a subsidiary of public-listed company APFT Bhd, has clinched a five-year contract with CAE Inc of Canada to train AirAsia cadet pilots.

Under the contract, CAE will provide the complete syllabus and equipment to APFT to conduct the latest and most sophisticated training to AirAsia cadet pilots to become first officers.

The latter, upon graduation, will be classified as licensed officers that permit them to fly as co-pilots with the guidance of the flight captain.
He said the financial aspects of the contract would be positive for APFT as the revenue generated would put the company on a stable footing for the next five years.

"We won't see the money rolling in now but at the end of 2013 when the first batch of cadet pilots are expected to graduate."
From APFT, it costs RM250,000 to train a cadet pilot from scratch to MPL level. With 200 pilots to train over a five-year period, a steady stream of income is assured for APFT. But for AirAsia, the total outlay to train a pilot costs US$160,000 (RM480,000) as the figure includes other phases of pilot training up to a total of 20 months.

But AirAsia isn't the only source of income for APFT as Faruk clarified that the terms of the contract permits APFT to accept cadet pilots from other local and foreign airlines and training schools.

"Without doubt, MPL training will enhance the reputation of APFT and put it in a good stead for other airlines to send their cadets to us."


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